Panaji/New Delhi: The Goa Chamber of Commerce and Industry (GCCI) has urged the Union Government to retain the current NIL export duty on low-grade iron ore, warning that any levy could severely impact Goa’s fragile mining sector, which is still recovering from years of legal and regulatory uncertainty.
In a letter dated September 15, addressed to Union Minister of Mines G. Kishan Reddy, GCCI President Pratima Dhond raised serious concerns about potential policy changes that may introduce export duty on iron ore fines and lumps below 58% Fe content – a category that includes almost 100% of Goa’s iron ore production.
GCCI Flags Risk of ₹800 Crore Annual Loss
The chamber warned that introducing export duty on low-grade ores could result in an annual revenue loss of more than ₹800 crore from current production levels. It would also undermine investor confidence, disrupt operational viability, and jeopardize thousands of mining-dependent livelihoods in Goa and the Konkan region.
“Such an approach will support local livelihoods, ensure sector viability, maintain fair trade practices, and avoid destabilising an already fragile industry,” the GCCI stated in its letter.
Goa’s Unique Mining Constraints Highlighted
The GCCI highlighted Goa’s structural disadvantages in comparison to other major mining states like Odisha, Jharkhand, Karnataka, and Chhattisgarh-
- The average iron content of Goa’s ore is just 54% Fe, far lower than in eastern India.
- The ore is unsuitable for domestic steelmakers due to high logistics costs and higher coking coal requirements.
- Even Goa’s pig iron units rely mainly on imported or higher-grade domestic ore.
Concerns Over Advisory Committee’s Terms of Reference
GCCI’s appeal follows the constitution of a high-level Advisory Committee by the Ministry of Mines on August 28, and a stakeholders’ meeting on August 26. Clause “E” of the Committee’s Terms of Reference has sparked speculation about a possible export levy on low-grade iron ore.
This has created what GCCI calls a “deep sense of uncertainty” in the industry, especially since Goa’s ore is primarily exported, as it has limited domestic demand.
Mining Resumption Still in Early Phase
Goa’s mining operations only resumed recently after years of suspension and Supreme Court litigation. Out of 12 mining blocks auctioned, only three have commenced production, while the rest are expected to follow later this year.
The Supreme Court cap on extraction – set at 20 million tonnes annually – also limits Goa’s contribution to less than 5% of India’s total iron ore production.
“An export duty at this stage would discourage competitive bidding, erode business confidence, and threaten the state’s economic recovery,” the letter noted.
Chief Minister Briefed on Concerns
GCCI said it had already briefed Goa Chief Minister Pramod Sawant during his visit to the chamber on September 8, where he assured that the state government would look into the issue.
The chamber emphasized that the original rationale for export duties – preserving high-grade ore for domestic steel use – has already been addressed through a 30% duty on ores above 58% Fe.
“India is now self-sufficient in iron ore. Only low-grade surplus ore is exported after domestic demand is met,” the letter pointed out, citing the Ministry of Mines Annual Report 2025.
Regional Realities
As the Centre evaluates its policy framework on iron ore exports, GCCI’s appeal highlights the importance of tailoring decisions to regional realities. A uniform export duty, they argue, could disproportionately harm Goa’s struggling mining sector, undoing hard-won gains in investment and employment.
